KUALA LUMPUR: YTL Corporation Bhd’s (YTL Corp) subsidiary, YTL Hotels & Properties Sdn Bhd, is acquiring a proposed hotel in Madrid, Spain, via the acquisition of the entire share capital of SOL HTL Project, S.L.U for RM1.04 billion.
SOL HTL’s property would be converted into a 200-room hotel to be operated under Marriott International Inc’s Edition brand with a targetted opening before Dec 31, 2020.
In a filing with Bursa Malaysia today, it said completion of the proposed acquisition would take place after satisfying certain conditions including the opening of the Edition hotel.
“The purchase consideration and incidental expenses for the proposed acquisition is expected to be funded by borrowings and/or internally generated funds.
“The proposed acquisition is in line with the group’s geographical diversification and expansion of the group’s revenue base through green field developments and strategic acquisitions,” YTL Corp said, adding that the luxury hotel segment in Madrid was growing and the proposed acquisition would enable the group to enter this market via a strategically located hotel.
“Overall, the acquisition is expected to contribute positively to the earnings of YTL Corp following its targeted completion during the financial year ending June 30, 2021,” YTL added.